Price Action Theory

From the Japanese rice traders, to Wycoff, to W.D. Gann, to Edwards and MaGee, to Al Brooks, to many good posters here at FF, the study of price charts has gone on. There is nothing new under the sun. I will be posting in this thread random chart templates to highlight price action. Nothing new, just need more freedom than I have in other peoples threads because they need to keep them clean. The primary textbook is Edwards and MaGee.


There are two large indicator packs at mladen's site that will allow you replicate almost any chart posted. Go there to get them.

The PAT chart that I will post first is the Ichimoku charts. They are the first charts to use a filled moving average in their analysis. Many people do not use IKH charts because of the learning curve. They are meant to be used with candles and have PAT formations of it's own.

My next chart is a modification from the currently active PAT thread, which they are calling PASR. It is a good thread. If you cannot be bothered with a lot of reading, go there, the lessons strat is teaching are tight. He is strict about his templates however, so here is an indicator that will help you to comply. His innovation is how he uses the moving average fills.

Next chart focuses on volume. A break on a confirmed swing with increased volume might be an entry.

Next chart is from the active Pivots with TDI thread. Davit also runs a tight ship. Not for newbies because you must be competent with PA.

I will cycle through these templates first to get a clear picture of what I am going to do. If by some miracle these do not do the trick there are others. I will open the floor for comment.

If I become completely lost, which is very rare, I will resort to kindergarten trading. Make sure price is above or below all the averages and make sure the nearest averages point the way.

So at the kindergarten level, I can see there is a pullback on the chart. How strong is it? Should I try to short it? A revised version of the Alien template says not so much.

If it is noticed, all of these charts say the same thing in different ways. Things are clear. That is the benefit of using multiple templates.

I am not really concerned about templates that others post on this thread as long as they highlight PAT in some way. This means if you like indicators, you might need to start anticipating them. I posted some high indie templates for a reason. It is that indie behavior can be anticipated. If it does not behave like you expected, cut bait, or trade small!

Nice ride down.

Hey jmn5611
Just popped in to say hi.
Nice thread.

Just free flowing thoughts these days. Once you have a method, you play around with templates, which all look different, but say the same thing.

Best trade of the day so far.

Nice run here.

This is an example of a chart with 12 indicators on it. Price action is clear to see.

A discussion on E/U made me go and have a look.

This is a confused market.

But the immediate trend is clearly up.

This is confirmed on this view. Although there is a recent loss of conviction.

At this level we a flat TDI as well a confused angulator.

The conclusion after cycling through templates is that this is a two sided market with a slightly bullish bias. Trade with a mean reverting strategy.